The verdict on the virtual currency came in a ruling Monday in a Miami money-laundering case that hinged on whether bitcoins meet the definition of “financial transaction” or “monetary instruments” under state criminal law.

Monday’s decision came in a case that is being closely watched in tech, financial and legal circles as the popularity of the virtual currency has skyrocketed in recent years.

The defendant, Michell Espinoza, was charged with illegally selling and laundering $1,500 worth of Bitcoins to undercover detectives who told him they wanted to use the money to buy stolen credit-card numbers.

Miami-Dade Circuit Judge Teresa Mary Pooler, in her opinion, acknowledged that she's no expert in economics. But she said it's clear that bitcoin has "a long way to go before it is the equivalent of money." Wrote Judge Pooler:

Bitcoin may have some attributes in common with what we commonly refer to as money, but differ in many important aspects. While Bitcoin can be exchanged for items of value, they are not a commonly used means of exchange....Bitcoin is a decentralized system. It does not have any central authority, such as a central reserve, and Bitcoins are not backed by anything. They are certainly not tangible wealth and cannot be hidden under a mattress like cash and gold bars.

The Florida Legislature may choose to adopt statutes regulating virtual currency in the future. At this time, however, attempting to fit the sale of Bitcoin into a statutory scheme regulating money services businesses is like fitting a square peg in a round hole....This Court is unwilling to punish a man for selling his property to another, when his actions fall under a statute that is so vaguely written that even legal professionals have difficulty finding a singular meaning.

Miami-Dade State Attorney Katherine Fernandez Rundle has said the arrests of Mr. Espinoza and co-defendant, Pascal Reid, marked the first time a money-laundering case involving bitcoins has been prosecuted in state court.

"These cybercriminals are way ahead of the rest of us in terms of trying to figure out ways they can launder dirty money," Ms. Rundle said earlier. A spokesman for her office said Monday prosecutors are reviewing the ruling and their appeals options.

The other defendant pleaded guilty to acting as an unlicensed money broker and was sentenced to probation, according to the Miami Herald.

During Mr. Espinoza's trial, according to the Herald, the defense team pointed to expert testimony by a Barry University economics professor who likened bitcoin to poker chips.

The question of how to define bitcoin is one that federal regulatory bodies have also wrestled with.

Last year, for instance, the Commodity Futures Trading Commission asserted that bitcoin and other cryptocurrencies aren’t currency but should be defined as commodities like gold and silver, falling under the agency’s jurisdiction. And in 2014, the Internal Revenue Service said bitcoin should be treated as property for federal tax purposes.

In Europe, bitcoin has made more inroads. As Law Bog previously reported, the European Court of Justice last year concluded that bitcoin should be treated like traditional currencies under tax law, ruling that transactions involving the virtual currency qualify for the same consumption-levy exemption that euros get when they exchange hands.